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Thu 1 Mar 2007 04:43 PM

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Accor sells 30 UK hotels

Last month Accor announced plans to sell 30 United Kingdom properties to Land Securities for EUR 711 million (US $933.8 million).

Last month Accor announced plans to sell 30 United Kingdom properties to Land Securities for EUR 711 million (US $933.8 million). The 30 properties are equivalent to 5000 Ibis and Novotel rooms.

Accor will continue to operate the hotels under 12 year variable leases, which are renewable six times. The rent will be calculated on an average of 21% of annual revenues with no guaranteed minimum.

The agreement also includes a EUR 53 million (US $ 69.6 million) renovation program to be financed by the owner.

Accor predicted the new partnership with Land Securities would allow it to step up its expansion program in the UK.

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